Johannesburg - Steinhoff International Holdings [JSE:SHF] plans to raise as much as €2.4bn ($2.7bn; R36.5bn) by selling shares, strengthening its finances following recent acquisitions by the South African furniture and clothing retailer.
The company plans to sell as many as 484 million shares to investors, Steinhoff said in a statement on Wednesday.
The stock will be placed at €5.055 a share, the closing price on Tuesday in Frankfurt, where it moved the main listing in December. The offering includes new shares and treasury stock.
Steinhoff snapped up UK discount chain Poundland Group and Mattress Firm Holding Corporation of the US in the past year.
READ: Steinhoff market value can double in 5 years
Christo Wiese, South Africa’s richest man with a net worth of $6.6bn, according to the Bloomberg Billionaires Index, has invested a further $1.8bn (R24.3bn) in Steinhoff International to help finance the furniture retailer’s acquisition spree in Europe and North America.
Wiese said last month Steinhoff isn’t done with deals as acquisitions are part of the company’s DNA. Steinhoff snapped up UK discount chain Poundland Group and Mattress Firm Holding of the US in the past year as it aims to challenge the likes of Ikea.
READ: Billionaire Christo Wiese invests over R24bn more in Steinhoff
“The real story here is around Wiese, confirming the financial backing and the acumen which he brings to the company,” said Mark Hodgson, a Cape Town-based analyst at Avior Capital Markets.
“They are raising more than what I estimated they required, which may suggest there are more deals in the pipeline.”
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